Tata Steel announces job cuts across Europe after major losses in 2019

Tata Steel (File photo) Photograph:( Zee News Network )

WION Web Team New Delhi, Delhi, India Nov 29, 2019, 06.05 PM (IST)

The year 2019 has proven to be a tough year for India's top metal tycoon Tata Steel. The steel sector across Europe is battling surplus capacity and high costs causing big losses to metal firms. 

Tata Steel has already announced job cuts in the region which angered the unions. Amid this Tata Steel is planning to hold talks with its workers on a “transformation programme” that involves up to three thousand job cuts.

The company plans to cut up to 1,600 manpower in the Netherlands and 1000 in Britain and 350 elsewhere in Europe. About two-thirds of job losses are expected to be managed and office-based roles. Indian-owned Tata steel announced the restructuring plans on November 18 in a bid to boost profitability.

The restructuring follows a decision by competition regulators in June to block a joint venture with Germany's ThyssenKrupp.

Unions in Britain and the Netherlands said that after that deal collapsed, they were given a job guarantee until 2021, and they would expect the company to stick to that.

Tata has said their proposals are designed to ensure a long-term future, but the unions say a vision that includes plans for investment has been consistently lacking.

Tata Steel is not the only metal firm battling with a sales drop in the European region. Britain’s biggest steel factory, British Steel, went into compulsory liquidation in may and is subject to a provisional agreement to be sold to Chinese steelmaker Jingye, which requires regulatory approvals if it is to go ahead. ArcelorMittal, the world’s biggest steelmaker, has idled a series of plants across Europe. It is also in conflict with the Italian government over its attempt to walk away from a deal signed in the year 2018 to buy Europe's largest steel plant Ilva.

(With inputs from agencies)

Story highlights

Tata has said their proposals are designed to ensure a long-term future, but the unions say a vision that includes plans for investment has been consistently lacking.